We call true profitability the brokerage unicorn—rare, elusive, but absolutely achievable.
Over the years, we’ve seen the financials of hundreds of brokerages, and we can confidently say the opportunity for strong profits isn’t behind us—it’s ahead of us. For well-run brokerages, profitability potential is better now than ever. But it all comes down to structure.
Let us walk you through the five essential steps which our Inner Circle Broker Coaching (ICBC) community uses to consistently plan for, track, and achieve best practice profitability—regardless of market conditions.
Step 1: Make a Mindset Shift
Profit doesn’t just happen—it’s a discipline. And it starts with a mindset: You control profit. Not the market. Not new competitors. Not commission split pressures.
Profit is an intentional outcome. It begins with you owning the outcome. This is your business, and you set the tone.
Step 2: Set Your Profitability Targets from the Top Down
Too many brokers look at profitability as whatever is left at the bottom of the income statement. That’s reactive.
We take a top-down approach using the ICBC Planning Pyramid. At the very top? A clear profit target—in real dollars—and a market-adjusted margin target. This is not wishful thinking. It’s a real number, based on real conditions.
In fact, we set the target every year for our coaching community. For this year? A 25% profit margin. That’s what we expect 80% of our brokers to hit—or exceed.
Step 3: Understand Your 5 Economic Drivers
Every brokerage runs on five core economic levers. These are the critical drivers that shape your revenue and expenses—the only buttons you can push to move your bottom line.
At ICBC, we’ve identified and named these five drivers so our clients can stop guessing and start operating with precision.
Want to learn more about the 5 economic drivers? Check out this video.
Step 4: Track the Right KPIs
Once you understand your economic drivers, the next step is to measure them. We use KPIs—Key Performance Indicators—specific, actionable metrics that give you real-time feedback.
These KPIs tell you whether you’re on track, if your strategies are working, or if you need to pivot. Think of them as your dashboard—not your rearview mirror.
Step 5: Build a Monthly Accountability Rhythm
Finally, you need consistency. A reporting system that holds you accountable, month after month.
In our coaching program, we meet with clients every month to review their numbers, connect strategies to results, and make real-time course corrections. This rhythm is what separates those who drift from those who scale with confidence.
There is a System!
Yes, it might sound like a lot—but it’s actually quite simple. No one teaches this when you open a brokerage, but there is a formula. There is a system. We’ve built it.
And if you’re ready to stop guessing and start leading, your next step is easy:
- Download our free guide, Cracking the Code—your roadmap to driving profitability through becoming the go-to brokerage for agents.
- Book a discovery call and let’s build the system that unlocks your brokerage’s full potential.